The result is that “the Al Qaeda cancer has also adapted to this pressure by becoming even more widely distributed, loosely knit, and geographically dispersed,” Mr. Panetta added.

“After being left on the sidelines of the momentous change that swept through the Arab world last year, they are now seeking to take advantage of the transition period to gain new sanctuary, to incite violence, and to sow instability.”

This poses a challenge for top Pentagon officials, Panetta acknowledged. One of these will be figuring out how to help small nations fight terrorists on their own soil.